Primark closing branches: ‘This is the beginning of the end – a phased exit’
An insider told the ‘Wirtschaftswoche’ that ABF – Primark’s parent company – had “blindsided from the start, overestimated the German market”. Profit margins in Germany have always been lower than in other countries due to high personnel, rental and maintenance costs.
The insider said high energy costs caused by the war in Ukraine are now putting additional pressure on Primark. Especially because the old Primark hype has now died down. But there are other problems.
If you want to order cheap clothes to take home, you will be disappointed with Primark. The textile discounter does not operate an online store. In the future, one would like to build on the ability to click and collect, but there is nothing to see on the German website yet.
This means that if you want to buy Primark fashion, you have to go downtown or to the mall. For many, however, shopping online has simply become more convenient. Consumer behavior has changed significantly as a result of the pandemic.
Sales in specialty stores are down, while e-commerce is growing in importance every year. In the German Retail Association’s Sustainability Consumption Monitor 2020, 38% of respondents said they had shopped more online since Corona.
